Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Palm Oil
• Deforestation
• Fire Control
• Peatland Management
• Resource Efficiency
• Labor Practices
• Community Engagement
• Food Safety
• Product Quality

Environmental Achievements

• Zero primary forest clearance and no degradation of HCV areas.
• Improved fire risk control with 72 new fire towers, totaling 183.
• No new planting on peatlands under control.
• 99% of milling fuel is renewable.
• 14% reduction in greenhouse gas emission (GHG) per tonne CPO since 2016.

Social Achievements

• Zero fatalities in oil palm operations (one fatality in rubber operations).
• 93% of sites have an SMK3-certified health and safety management system.
• 117 cleft lip operations performed.
• RSPO certification achieved at four cooperatives.

Governance Achievements

• All indoagri mills were audited against Policy requirements.
• 53% of CPO production was RSPO-certified.
• CEO won Best CEO (Mid Cap) award at the Singapore Corporate Governance Awards.

Climate Goals & Targets

Environmental Challenges

• Achieving sustainability certification for smallholders.
• Managing fire risk, especially in West Kalimantan and South Sumatra.
• Maintaining water levels in peatlands.
• Ensuring compliance with environmental regulations and RSPO standards across the supply chain.

Mitigation Strategies

• Extended target for smallholders certification to 2020.
• Investment in fire towers, equipment, and training.
• Implementation of canal engineering techniques to prevent peatland drying.
• RSPO and ISPO certifications, supplier audits, and engagement with stakeholders.

Supply Chain Management

Supplier Audits: All indoagri mills audited in 2017; supplier verification process underway.

Responsible Procurement

• Responsible Supplier Guidelines 2017.
• RSPO and ISPO certifications preferred for suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Fire and haze.
• Peatland drainage.

Transition Risks

• Changing consumer demands for sustainable palm oil.
• Increasing regulatory scrutiny.

Opportunities

• Improved resource efficiency.
• Development of high-yielding, sustainable oil palm seeds.

Reporting Standards

Frameworks Used: GRI Standards: Core option, SGX-ST Listing Rules Practice Note 7.6

Certifications: RSPO, ISPO, Proper, FSCC 22000, Halal

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• High-yielding oil palm seeds.

Awards & Recognition

• Platinum Indonesia Best Brand Award (Bimoli)
• Best CEO (Mid Cap) award (CEO)

Environmental Metrics

ESG Focus Areas

• Sustainable environmental and social practices
• ISPO certification
• Forest fire prevention
• Occupational health and safety
• Smallholder engagement

Environmental Achievements

• 503,000 tonnes of ISPO-certified CPO (71% of total nucleus CPO production)
• 4% reduction in energy consumption at refineries (2018 baseline)
• 6% reduction in water consumption at refineries (2018 baseline)

Social Achievements

• Complete elimination of paraquat from all operations since 2018
• 59 sites certified to SMK3 (Occupational Health and Safety Management System), with 51 sites achieving the SMK3 Gold award
• Assisted 10 smallholder cooperatives (KUDs) in ISPO audits

Governance Achievements

• Active Board involvement in evaluating sustainability risks and opportunities
• Quarterly updates to the Board on sustainability risks and concerns through the Audit & Risk Management Committee

Climate Goals & Targets

Environmental Challenges

• Persistent oversupply and depressed demand for CPO
• Low CPO prices (10-year low)
• Global sugar glut resulting in lower sugar prices
• Minimum wage increase in Indonesia
• US-China trade tensions affecting global trade flows
• COVID-19 outbreak disrupting global supply chain
• Two work-related fatalities in palm oil operations

Mitigation Strategies

• Cost reduction initiatives (streamlining workforce, reducing overtime, increased mechanisation)
• Innovation and strategy fine-tuning in edible oils and fats division
• Maximising ethanol production in Brazil to leverage higher prices
• Effective fire safety measures and assistance to neighboring estates and villages
• Prioritising capital expenditure investments in growth areas
• Focus on cost-control measures and innovations to increase productivity

Supply Chain Management

Responsible Procurement

• Sustainable Agriculture Policy (no deforestation, no peatland planting, no burning, preservation of HCV and HCS areas, upholding labor and human rights, upholding FPIC)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Drought
• Fire

Reporting Standards

Frameworks Used: ISPO

Certifications: ISPO, SMK3, Bonsucro

Sustainable Products & Innovation

• Valenco dark chocolate products

Awards & Recognition

• Indonesia Living Legend Brands (IBBA)
• Indonesia WOW Brand
• Best Stand Awards 2019
• One of Indonesia's most valuable brands (Brand Finance)
• Ministry of Trade Award 2019

Environmental Metrics

ESG Focus Areas

• Sustainable Agriculture
• Pandemic Resilience
• Environmental Protection
• Responsible Sourcing
• Occupational Health and Safety
• Human Rights
• Community Relations
• Product Integrity

Environmental Achievements

• 2% reduction in GHG emissions per tonne of palm product compared to 2019
• 2% reduction of energy consumption per tonne of material processed in mills compared to 2019
• 1% reduction in water usage per tonne of FFB processed in mills compared to 2019
• 3% reduction in water consumption in refineries compared to 2019
• Zero primary forest clearance and degradation of HCV areas in 2020
• 100% of sites have HCV Management and Rehabilitation Plans
• 98% of fuel used in mills is from renewable products

Social Achievements

• 7% reduction in group Accident Frequency Rate compared to 2019
• 49% decrease in Accident Severity Rate compared to 2019
• First KUD (Koperasi Unit Desa) received ISPO certification
• Launched Sustainable Oil Palm Smallholders Forum
• 1,183 contract workers hired as permanent workers in 2020
• 86,138 hours of employee training (approximately 10,767 man-days)

Governance Achievements

• Zero confirmed incidents of bribery and corruption in our operations in 2020
• Full compliance with Indonesian laws and regulations on human rights and labour rights
• Full compliance with regulations on land rights and land management
• Zero incidents of FPIC violations on new development area

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic affecting businesses and supply chains worldwide
• Weakening CPO prices due to falling demand
• Weakening value of the Indonesian Rupiah
• Slowdown in sales of refinery products
• Unpredictable weather patterns (off-season rains, flooding)
• Limited access to fields due to restrictions on visitors to villages and plantations

Mitigation Strategies

• Updated and communicated business continuity plans
• Reviewed Business Continuity Management
• Established a cross-organisational COVID-19 Task Force
• Introduced new mediums of retailing EOF products (home deliveries)
• Modified internal audits to facilitate remote auditing
• Developed plans to manage the transfer of operations across mills, factories and refineries
• Stepped-up forecasting efforts to better plan for weather-dependent operations
• Workers in the plantations shared field conditions through virtual meetings

Supply Chain Management

Supplier Audits: 100% of mills and their supplying estates audited in 2020

Responsible Procurement

• Sustainable Agriculture Policy
• ISPO certification

Climate-Related Risks & Opportunities

Physical Risks

• Increasing temperatures leading to an increase in forest fires and drought
• Increased severe and prolonged rainfall leading to flooding

Opportunities

• Development of seeds resistant to extreme weather conditions

Reporting Standards

Frameworks Used: GRI Standards: Core option, SGX-ST Listing Rules Practice Note 7.6 Sustainability Reporting Guide

Awards & Recognition

• SWA – Most Valuable Indonesian Brand (Brand Finance) 2020
• SWA – Living Legend Brand 2020
• Top 50 WOW Brand (MarkPlus, Inc) 2020
• 7 awards from the Ministry for Environment & Forestry for PROKLIM projects

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Responsible Sourcing
• People
• Community Relations
• Product Integrity

Environmental Achievements

• Achieved emissions reductions of up to 80% compared with conventional anaerobic composting at three aerated bunker composters.
• Completely switched from using coal to palm shell as an energy source at Lubuk Pakam refinery and are in the process of implementing this change at two other refineries.
• Increased yields across our plantations through active crop management, nutrient analysis, improvements in fertiliser application, and increased mechanisation.
• 86% of our estates are ISPO certified, along with 20 of 27 mills and 84% of nucleus CPO production.

Social Achievements

• Resumed operation of Posyandu healthcare facilities, providing educational programmes for pregnant mothers and medical screening for babies and children.
• Rumpin educational centres provided tutoring and training to over 23,041 visitors in 2022.
• FFB Purchase Scheme provides price assurance to smallholders, and Seedling Provision Program gives farmers access to high-quality seeds at subsidised rates.
• Rejuvenation Scheme (Peremajaan Sawit Rakyat, PSR) helped 51 farmers replant mature plantation areas across 123 hectares.

Governance Achievements

• Aligned activities with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD).
• Zero confirmed incidents of bribery and corruption in our operations in 2022.
• Tanjung Priok plant obtained the “Good Manufacturing Practices” certification.

Climate Goals & Targets

Environmental Challenges

• Geopolitical conflict, supply chain disruption, rising global protectionism and increasingly erratic weather patterns resulted in volatile commodity prices and operational difficulties.
• Rising cost of estate development and smallholder expectations.
• Inflationary pressures have led to diverging expectations relating to estate upgrading costs.

Mitigation Strategies

• Continued lowering methane emissions at three aerated bunker composters.
• Switching from coal to palm shell as an energy source in refineries.
• Focus on cost control improvements and drive efficiency through digitalisation and streamlining of work processes.
• Providing training and financial assistance to smallholders to help them meet ISPO certification requirements.

Supply Chain Management

Supplier Audits: 710 visits, workshops, and audits on 100% of our mills and their supplying estates in 2022

Responsible Procurement

• Sustainable Agriculture Policy
• ISPO certification
• CPO quality requirements

Climate-Related Risks & Opportunities

Physical Risks

• forest fires
• drought
• flooding

Transition Risks

• regulatory changes
• market shifts

Opportunities

• development of energy-efficient products
• seeds resistant to extreme weather conditions

Reporting Standards

Frameworks Used: GRI 2021 Standards

Awards & Recognition

• one award from the Ministry for Environment & Forestry for PROKLIM projects
• “Good Manufacturing Practices” certification for Tanjung Priok refinery